EDHEC Business School Climate Finance Highlights - October 2024 Issue
Delivering Research Insights Double Materiality to the Financial Community
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EDHEC Business School - Climate Finance Highlights

Climate Finance Highlights – Issue n°2 – October 2024 

Welcome to the second edition of EDHEC's Climate Finance Highlights, delving into groundbreaking research and insightful discussions from our experts on climate finance. Driven by our institutes and initiatives, including the EDHEC-Risk Climate Impact Institute, EDHEC Infra & Private Assets Research Institute, and Scientific Portfolio, this newsletter brings you the latest in cutting-edge research and practical applications. This quarter, we explore the growing demand for transparency in climate risk assessments, the essential role of finance in driving the climate transition, and the need for more robust climate scenario models. Our experts delve into decarbonisation strategies, the financial sector's contribution to climate action, and the potential costs of inaction on infrastructure sustainability.

Latest Insights

Investors are seeking more transparency on risk assessment and actions taken to improve the sustainability of infrastructure

Investors are seeking more transparency on risk assessment and actions taken to improve the sustainability of infrastructure

In this interview, Rob Arnold, Sustainability Research Director at EDHEC-Risk Climate Impact Institute, discusses the creation of a new body of knowledge on decarbonisation and climate resilience strategies in infrastructure sectors. He explains the necessity and beneficiaries of this knowledge, the project's structure, and how it addresses climate risks.

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Finance of transition, transition of finance

Finance of transition, transition of finance

In this article, Frédéric Ducoulombier, Director of the EDHEC-Risk Climate Impact Institute, emphasises the urgent need for increased investment in climate change mitigation and adaptation. He highlights the financial industry's potential role as a key facilitator and accelerator of the climate transition and identifies the necessary updates to drive this transformation within the finance sector.

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The problems with climate scenarios, and how to fix them

The problems with climate scenarios, and how to fix them

In this article, Professor Rebonato calls for a revision of the current approach to emission projection models, proposing ideas and actions that move in the direction of probabilism. Faced with the uncertainties surrounding climate change, policymakers and investors need to know what can happen and how likely these outcomes may be. Unfortunately, current scenarios answer only the first question – and at that, only partially. Research carried out at EDHEC-Risk Climate tries to provide approximate but “actionable” answers to the second.

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[#dataviz] Climate change could be very costly for those who have invested in infrastructure

[#dataviz] Climate change could be very costly for those who have invested in infrastructure

Discover, through a dedicated carousel, the key points of the "Highway to Hell" study, published by the EDHEC Infra & Private Assets Research Institute in January 2024.The risks of transition and physical risks will affect all installations, with varying degrees of intensity: energy and water, data centres, transport, etc. The total bill could run into hundreds of billions of euros, but could be limited if an "orderly" transition is implemented. Here are a few illustrations to illustrate the main findings of this research.

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Reference Publications

Videos and Podcasts

Assessing the Impact of Climate Risk on Global Equity Valuations - EDHEC-Risk Climate

Assessing the Impact of Climate Risk on Global Equity Valuations - EDHEC-Risk Climate

ESG Screening - Scientific Portfolio

ESG Screening - Scientific Portfolio

Carbon Emissions Decomposition - Scientific Portfolio

Carbon Emissions Decomposition - Scientific Portfolio

Biodiversity Risks - EDHEC Speaker Series

Biodiversity Risk - EDHEC Speaker Series

News

In the Press

Bloomberg - The Market’s Next Black Swan Is Climate Change

Bloomberg - The Market’s Next Black Swan Is Climate Change

Delano - 40% of global equity value at risk from climate inaction: study

Delano - 40% of global equity value at risk from climate inaction: study

Reuters - Aggressive climate action needed to preserve stocks' value, paper says

Reuters - Aggressive climate action needed to preserve stocks' value, paper says

The Conversation: The problems with climate scenarios, and how to fix them

The Conversation: The problems with climate scenarios, and how to fix them

Forthcoming Events

12 November 2024

12 November 2024

Climate Finance - EDHEC Speaker Series

Speaker: Marcin Kacperczyk (Imperial College)
Moderator: Riccardo Rebonato (EDHEC, EDHEC-Risk Climate).

27 November 2024

27 November 2024

Scientific Beta Days Europe 2024

Riccardo Rebonato will discuss the impact of climate change on global equity valuation. Drawing from new research by EDHEC-Risk Climate Impact Institute, supported by Scientific Beta, he will discuss the effects of climate tipping points, the importance of state-dependent discounting, and the influence of risk premia on equity valuations under different climate scenarios.

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